sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Budget Extravaganza »
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST
 Will Budget 2018 cut tax on switch from dividend to growth option in mutual funds?
 Startup eco-system looks forward to the budget for addressing tax dilemma
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift

Budget to focus on driving inclusive growth
February, 22nd 2010

The focus of the Union Budget is likely to be on driving inclusive growth, fostering agro productivity, infrastructure development and exports. However, Anand Rathi Securities does not expect either a broad-based tax hike or a major cut in expenditure across-the-board in the FY11 budget.

Yet, non-recurrence of one-off expenditures of FY10, strong non-tax revenue growth, partial rollback of tax rate cuts in the last two years and change in the composition of GDP is likely to narrow the FY11 fiscal deficit. Strong fund mobilization through the small saving scheme could reduce the reliance on market borrowing to fund the fiscal
deficit.

We do not expect either a broadbased tax hike or a major across-the-board cut in expenditure in the FY11 budget. Yet, we forecast that the FY11 fiscal deficit could narrow by 1.6 percentage points to 5.9% given strong non-tax revenue growth, partial rollback of tax rate cuts, the lack of one-off expenditures as in FY10 and the change in GDP growth mix, said the brokerage firm.

According to the brokerage, the rollback of excise duty concessions is likely to be modest and selective, with focus on sectors that have recorded strong demand growth in FY10 automobiles, consumer durables and cement. Customs tariff roll backs, however, are likely to be more broad-based. The service tax rate is likely to revert to 12%, while direct tax rates could be broadly unaltered.

Revenue from 3G spectrum auction and the likely surge in the RBIs profit could play important roles in containing the fiscal deficit. The strong fund mobilization through the small-savings scheme could reduce the governments reliance on market borrowing to fund the fiscal deficit.

Anand Rathi Securities believes that sectors that are likely to benefit include agro products, financials, capital goods, construction, IT services and utilities. Rising tax rates, however, are likely to be negative for the automobile and metal sectors.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions